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Personal Banking

Last Updated on: 01/05/2023

Tax Saver Deposit Scheme


The deposit scheme is open to individuals. The Karta of a Hindu Undivided Family (HUF) can open in his capacity as Karta. The deposit can be in the single name of the depositor or in joint names of two adults or jointly in the name of an adult with a minor (only two joint account holders are permitted) payable to either or survivor. In the case of deposits in the joint names, the tax benefit can be claimed by the first named depositor.

Maximum Amount

A maximum of Rs. 1,50,000/- is accepted under the scheme from one individual / under one deposit account in year (Year means one year from 1st April to 31st March). The minimum amount that can be accepted is Rs. 10,000/-.

Period of deposit

The deposit is accepted for any period from 5 years to 10 years.

Types of Deposit under the scheme

The deposit can be accepted in the form of reinvestment deposit (RDP) or Fixed Deposit or Special Fixed Deposit (SFD) and interest can be payable half-yearly or quarterly or monthly.

Transfer of deposit

While transfer of deposit between branches of IOB is permitted, transfer between banks is not permitted. Branches, therefore, should not accept deposits transferred from another bank.

Loan against deposit / accepting the deposit as collateral security

Loan cannot be granted against the deposit nor can the deposit be accepted as collateral security.

Repayment of deposit

Deposit is repayable on or after maturity date in the normal course. Premature closure is not permitted till the deposit completes 5 years from date of deposit.

Rate of Interest

As applicable from time to time

Senior Citizen deposits

0.50% over and above the above rates


Nomination can be made for the deposits as per the existing rules for nomination. No nomination, however, can be accepted in the case of deposits held for and held by or on behalf of a minor.

Replacement of lost/destroyed deposit receipt

In case of deposit receipt lost or destroyed, duplicate receipt can be issued by furnishing an indemnity.

Death of depositor

In case of death of depositor, the nominee is entitled to claim the deposit amount before or after the maturity date. The claim from nominee will be settled as per the current guidelines in force for settlement of claim on death of depositors. In case of deposits where the depositor died without giving nomination, the deposit amount can be settled to the legal heirs.

Tax liability on interest on the deposit

Interest on the term deposit is liable to tax under the Income Tax Act. The tax on such deposit shall be deducted at source in accordance with the provisions of the Income Tax Act.

Tax benefit

The single depositor or the first holder of joint deposit can claim exemption from Income Tax under section 80C for amount invested in the deposit along with all other approved investments under section 80C with a maximum of Rs. 1.50/- lacs.